APA and CS Energy to develop 400MW gas power station in Queensland

Core Insights - APA Group and CS Energy have formalized a joint development agreement for a 400MW gas-fired power station, the Brigalow Peaking power project, in Queensland, expected to be operational by 2028 [1][2] - The project aims to provide firming capacity during peak electricity demand, supporting variable renewable energy sources [1] Project Development - The development is subject to external and government approvals, with APA leading the project delivery and obtaining an 80% ownership interest after meeting conditions [2] - CS Energy will retain a 20% ownership stake and will be responsible for operating and maintaining the facility [2] Financial Aspects - Final capital expenditure will depend on detailed engineering design, to be completed in the first half of 2026 [3] - APA plans to manage exposure to wholesale electricity price fluctuations through a proposed 25-year hedge offtake agreement with CS Energy, providing inflation-linked revenue [3][4] Infrastructure and Operations - The plant will be connected to APA's Roma Brisbane pipeline via a separate lateral transport and storage pipeline currently under development [5] - An agreement for project development, gas transportation, and storage for the new pipeline was completed in July 2025 [5] Strategic Importance - The project is seen as essential for increasing gas-powered generation capacity in Australia, supporting the integration of renewables into the energy system [6] - It is expected to create value for communities, energy consumers, and APA securityholders, highlighting the partnership with CS Energy and the Queensland government [7]